The manufacturer reported net sales in its fiscal 2003 third quarter of $433.6 million, an increase of six percent compared with sales of $407.5 million in the fiscal 2002 third quarter. Consumer segment sales were essentially flat, reflective of the recently softened retail environment. The industrial segment’s sales grew 11%, mainly from the continued strength of services sales. This growth includes several small acquisitions and favorable foreign exchange rates, which contributed approximately three percent sales growth to each segment, according to the company.
Net income improved by 49%, to $4.9 million, compared with net income of $3.3 million in the 2002 third quarter. The 2003 results reflect reduced interest expense in addition to solid earnings improvements in both operating segments.
“We are pleased that we were able to maintain our positive momentum in the third quarter, which is historically RPM’s weakest quarter because of seasonal effects,” said Frank C. Sullivan, chief executive officer and president, RPM. “Our ability to increase net income at a faster rate than sales reflects the leverage gained from strategic actions over the past several years to lower our costs and strengthen our capital structure. As a result of our performance to date, and in spite of a still weak economic outlook, we remain confident that our operations will continue to deliver strong results through the end of our fiscal year.”